Financial Independence

You've been investing for a while now and you're starting to build up a sizeable investment portfolio. So how do you know when you've reached financial independence?

In short, you have reached financial independence when your passive income exceeds your expenses, simple as that! 

So if you spend $2,000 per month and you have a stock portfolio that pays dividends of $24,000 per year ($2,000/month) then you've reached Level 4: Financial Independence.

Congratulations! You can now retire from ever having to do a job that you don't love ever again.

It's now time to rediscover your passions and spend your time doing what you love. I'm sure if you can reach Level 4 early enough in life, you'll likely build one of your passions into an income producing hobby anyway, but it's just a bonus at this point! 

Don't forget to follow me in Twitter @EarlyRetireAus and leave a comment below, I'd love to answer your questions. 

Peace.